Q.In the nature of social responsibility of management applies the rule of
(A) 'Buyer beware'
(B) 'Seller beware'
(C) Both (A) and (B)
(D) None of these

Under the modern notion of social responsibility of management, the rule of 'buyer beware' (caveat emptor) gives way to 'seller beware' (caveat venditor) — the seller is responsible for the quality, safety and honest dealing of what is sold.

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Management principles are guidelines to action because they give managers tested direction on how to act in a given situation.

Principles of management are general, tested statements of cause and effect. When a manager faces a real situation, these principles supply a ready guideline indicating what ought to be done, so the manager need not depend on costly trial-and-error. For example, the principle of 'unity of command' guides a manager to ensure each subordinate reports to only one boss. In …

Rita's favouritism towards women employees while resolving staff disputes violates Fayol's principle of Equity.

Fayol's principle of Equity states that managers should be fair and impartial when dealing with subordinates — similar situations should be handled similarly, and no employee should be favoured or discriminated against on grounds unrelated to their actual performance or the merits of the issue at hand, such as gender, personal liking, or background. In the passage, Rita is shown to be inclined towards women employees specifically when resolving disputes among staff, which means similarly placed male and female employees in a dispute are not being treated on equal, fact-based terms — this is precisely the kind of partiality that the principle of Equity is meant to prevent. Over time, such …

The correct option is (d) Gandhiji. The Trusteeship principle is a Gandhian concept of using wealth for social good.

• (a) Jawaharlal Nehru, (b) Subhash Chandra Bose and (c) Indira Gandhi are national leaders but not associated with Trusteeship. …

True — this is exactly the significance of management principles: they distil years of managerial experience into usable guidance for real-world decisions.

Principles of management (such as Fayol's fourteen principles or Taylor's scientific-management techniques) were developed by observing what actually worked and what failed across many real organisations. Because of this, they give a manager:

• a ready reference to understand and predict the likely outcome of a decision before taking it,
• a way to increase efficiency by avoiding past mistakes,
• training material for new managers to build managerial skill faster, and
• a benchmark to fulfil social obligations responsibly. …

The correct option is 14.

Henri Fayol is regarded as the father of general management theory. Based on his own managerial experience, he formulated fourteen principles — division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest to general interest, remuneration, centralisation and decentralisation, scalar chain, order, equity, stab …

Principles of management act as a reliable guide for managers facing increasingly large, complex and competitive organisations — hence their growing importance in modern times.

Reasons for their growing importance:

• Growing size and complexity of organisations — large enterprises with many departments and employees need systematic guidelines rather than trial-and-error decision-making.
• Increasing competition — scientific principles help managers use resources optimally and stay competitive.
• Need for scientific decision-making — principles, derived from experience and experimentation, reduce guesswork and improve the quality of decisions.
• Efficient use of resources — principles guide managers towards minimum wastage of time, money, material and effort.
• Changing technology and environment — principles (though not rigid laws) help managers adapt and respond appropriately to constant change.
• Fulfilling social responsibility — principles (e.g. Fayol's "Equity" and "Subordination of individual interest to general interest") remind managers to balance profit motive with obligations to employees, customers and society. …